The implementation principles of the regulation, known as the 'Asset Peace', which envisages bringing assets located abroad to Turkey, have been determined. Accordingly, assets abroad must be declared to banks or intermediary institutions in Turkey by July 31, 2027. Declarations can also be made by authorized proxies or legal representatives.
If the person bringing the asset undertakes not to invest the money in Turkish lira instruments, they will pay a 5 percent tax upfront. The tax rate may decrease according to the undertaking. Here are the details of the 'Asset Peace' communiqué published in the Official Gazette by the Revenue Administration... Who will benefit? The regulation covers both domestic and foreign assets.
Real and legal persons holding money, gold, foreign currency, securities and other capital market instruments will be able to benefit from the regulation. Persons who are not income or corporate taxpayers can also declare their unregistered assets in Turkey. Can companies bring their assets?
Under certain conditions, assets held in the name of or disposed of by legal representatives, partners or proxies of companies may be declared on behalf of the company. Some assets disposed of by companies abroad may also be registered in the name of a real person. HOW WILL REAL ESTATE BE BROUGHT? Can company partners make declarations?
Based on a power of attorney or representation agreement issued before June 4, 2026, assets abroad managed by legal representatives, partners or persons authorized to act on their behalf may be declared on behalf of the company. Are real estate properties included? Real estate is not included.
However, if real estate located abroad is sold and converted into an asset by July 31, 2027, it falls within the scope of the regulation. What will the tax rate be? Those bringing their assets to Turkey will pay a 5 percent tax upfront. No documents will be required at the time of declaration. If assets are held in Turkish lira investment instruments, the tax rate will decrease.
Those who hold their assets in Turkish lira instruments for at least one year will pay 4 percent tax, two years 3 percent, three years 2 percent, four years 1 percent, and five years 0 percent. For declarations made from January 1, 2027, half a point will be added to these rates. Will an undertaking be required? Those who will benefit from reduced tax rates must provide an undertaking when declaring to the bank or intermediary institution.
What happens to those who do not comply with the undertaking? If the undertaking conditions that enable the reduced tax rate are not met, the tax not collected on time will be calculated and collected with late payment interest. However, no tax loss penalty will be imposed. When must they bring the assets?
Assets located abroad must be brought to Turkey and transferred to accounts at banks or intermediary institutions within two months from the date of declaration. The asset transferred from abroad to an account in Turkey must be converted into the committed investment instrument within 10 days. The owner of the bank or intermediary institution account in Turkey and the person making the transfer from abroad may be different.
THOSE BRINGING PHYSICALLY WILL OBTAIN A DOCUMENT What will those who bring their assets physically do? When physically brought assets are deposited at a bank or intermediary institution, a document from the Customs Administration will be presented. How will the value of declared assets be determined? The declaration date will be taken as the basis when determining the value of the assets subject to declaration.
Money in Turkish lira will be valued at its nominal value, gold at its market value, and foreign currency at the Central Bank of the Republic of Turkey's foreign exchange buying rate on the declaration date. For securities and other capital market instruments, the stock exchange market value will primarily be taken into account. When will the tax be collected?
The tax on assets brought under the peace will be collected upfront through banks and intermediary institutions. They will declare this to the tax office by the evening of the 15th day of the month following the declaration. The assessed tax will be paid by the bank or intermediary institution within the same period. NO AUDIT FOR THOSE MEETING THE CONDITIONS Will there be an audit?
No tax audit or tax assessment will be conducted due to the assets subject to declaration. However, to benefit from this assurance, the conditions stipulated in the law must be fully met. HERE ARE EXAMPLES... EXAMPLE 1: A person who brings foreign currency equivalent to 10 million TL from abroad and undertakes to keep it in a time deposit account for at least two years will pay tax at 3 percent of the declared asset.
In this case, they will have registered their asset in the system by paying 300 thousand TL in tax. EXAMPLE 2: If a company provides an undertaking that its 25 million TL worth of assets abroad will be invested in time deposit accounts for at least five years, it will pay no tax on the declared asset.
EXAMPLE 3: If a real person declares 8 million TL worth of assets abroad to the bank on February 5, 2027, and undertakes to invest them in lease certificates for at least one year, since half a point must be added to tax rates for declarations made from January 1, 2027, they will pay 4.5 percent tax instead of the normal 4 percent.
